On Tuesday FCA announced that it plans to construct a new plant in Detroit. Fiat Chrysler will spend $4.5 billion for the new factory and extend manufacturing potential at five other Michigan branches. The plant is not a brand new factory. Instead, the company aims to renovate its existing Mack Avenue Engine Complex and transform the facility into the factory. The process to convert the same will require $1.6 billion. Fiat says the investment will bring about 6,500 new jobs. Besides, FCA will use the plant to produce the next-generation Jeep Grand Cherokee. It will also manufacture Jeep’s long-awaited three-row SUV. It is clear that Fiat primarily focuses on its Jeep and Ram brands. The company prepares to unroll new models to meet customer’s taste for pickups and sports utility vehicles.
FCA states the plant would also be utilized to develop plug-in hybrid variants. Apart from this, it will offer the flexibility for pure-electric models of those vehicles over the street. Fiat intends to start the construction by the end of the second quarter of 2019. As well as the first three-row SUVs is ready to roll off the line by the end of 2020. Though, the next-gen Grand Cherokee will show-off by the first half of 2021.
Mike Manley, the FCA CEO, said the announcement allows Jeep to get into new segments that bestow significant margin opportunities. Mick added it would enable new electronic Jeep products and provide openness to manufacture fully battery electric vehicles. FCA also states that the factory announcement reflects its planned focal point from small cars to Jeep and Ram brands. According to the company, these vehicles are more popular and more productive. Although, the announcement arrives as President Trump considers to increase taxes on auto imports. The act would reflect through the automobile industry. Experts say the move would influence more considerably on domestic producers. Mike said the company aims to continue to export the Jeep Grand Cherokee. He added there was global interest in a new three-row full-size Jeep SUV.
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Michael has been working in the business industry for quite a sometime and he recently made the decision to become a full-time business journalist. Daily Hours, he also helps us take care of the business writing.